Definition

Money, equipment, or assets used to generate more wealth—essentially the financial fuel that makes the economic engine go vroom. In finance, it's the cash you invest; in economics, it's one of the holy trinity of production factors alongside labor and land. Venture capitalists have lots of it, and startups are perpetually hunting for it like caffeinated treasure hunters.

Example Usage

The startup burned through its seed capital in six months on an office with a craft beer tap and a meditation yurt.

Source: Economics and finance terminology

Related Terms

Beginner

book value

An asset's value on the balance sheet after accounting for depreciation and amortization—basically what the accountants say it's worth, which often bears no resemblance to what someone would actually pay for it.

💰 Finance / Accounting
Advanced

smoothing

The practice of manipulating earnings to reduce volatility and create the appearance of steady, predictable growth, because investors apparently can't handle reality. It's the financial equivalent of Instagram filters for your P&L.

💰 Finance / Accounting
Advanced

stuffing the channel

Forcing distributors to buy more inventory than they can sell to inflate current sales figures, essentially borrowing from future sales to make today look better. It's corporate kicking-the-can-down-the-road at its finest.

💰 Finance / Accounting
Advanced

futures

Financial contracts obligating parties to buy or sell assets at predetermined future dates and prices, essentially allowing traders to bet on tomorrow's commodity prices today. These derivatives let farmers hedge against price drops and speculators gamble on market movements without ever touching an actual bushel of wheat. The futures market adds liquidity and price discovery to markets while giving financial news anchors something to dramatically discuss at market close.

💰 Finance / Accounting
Advanced

Margin Call

The terrifying phone call from your broker informing you that your borrowed-money bets have gone south and you need to cough up more cash immediately. It's the financial equivalent of your landlord and your bookie showing up at the same time demanding payment.

💰 Finance / Accounting
Beginner

Market Cap

The total value of a company's shares, calculated by multiplying the stock price by the number of shares, which sounds scientific until you realize the stock price is based on vibes. A trillion-dollar market cap just means a lot of people collectively agreed on a very large imaginary number.

💰 Finance / Accounting

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See “capital” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.

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myob

mind your own business...